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Microcap & Penny Stocks : ROVAC CORP. (OTCBB: ROVC) -- Ignore unavailable to you. Want to Upgrade?

To: holzen who wrote (71)	3/25/2000 8:45:00 PM
From: Eric Fader	Read Replies (2) \| Respond to of 96

MMs decide on the quote, not the public orders And what do you think the MM does immediately after he buys the stock or sells it short? Virtually all the time, he immediately wants to sell it or cover, respectively. Most MMs seldom trade for their own account. They'd rather make $50 here and $100 there flipping stocks all day long. You obviously missed my point. Retail investors' orders are sent to the MMs, who fill them if they are at the prevailing bid or ask, or "sometimes" in-between. But a MM can also bid to buy stock specifically to sell to the retail investor at his between-the-spread price, or offer stock short and fill the retail investor's sell order at his between-the-spread price if the offer is hit. For example, NITE does this often to fill between-the-spread limit orders for my discount broker. Most importantly, sophisticated OTC-BB traders generally trade through MMs. Example: When I wanted to buy ROVCE when it had a wide spread, I had my broker/MM (who doesn't make ROVCE himself) send another MM in at a penny above the best bid. When the next seller hit the bid, the "agent" or "reflecting" MM sold the stock to my broker for a penny over what he paid (an easy and risk-free $100 to him for every 10,000 shares). I paid a penny over the bid price (.19 at that time, I think), plus a normal commission to my guy, rather than the ask price. When a MM seems to be "trying to drive the stock down" (or up), 95% of the time he is sitting there on behalf of a big seller (or buyer), either another MM, a promoter, a fund or other entity, or an individual who trades through a MM. The point: I'm an individual, and I'm "the public," and I'm a retail investor, but my bids and offers DO become the quote when I trade through a MM. My particular MM is a wholesaler with only 8 or 10 retail accounts across the country, but this is not that uncommon. And sorry, you're just plain wrong about small-cap quotes. If your orders are not being reflected in the quote, you need a new broker.